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Neighbour disputes: sellers must disclose them
There’s an old phrase – ‘an Englishman’s home is his castle’. Of course, using arrows and boiling oil is frowned upon today. But it’s understandable when property owners turn to their legal armoury to protect themselves from a neighbour’s unwelcome behaviour. Common neighbour disputes involve boundaries, rights of way, noise, and trees.
However, in enforcing your legal rights, never lose sight of the fact that you must disclose any neighbour dispute – whatever the cause – to a potential buyer when you come to sell the property. That applies even if the dispute has long been settled. And let’s be honest, as a buyer, your enthusiasm for the property will likely wane considerably upon hearing of a ‘troublesome’ neighbour.
There’s an adage that neighbour disputes never truly settle until both parties move away.
Seller lied about neighbours
Whether you are buying a house, a car, or furniture, the legal principle of ‘caveat emptor’ (‘let the buyer beware’) applies. So, unless the seller makes a false representation, you purchase at your own risk. Indeed, the phrase ‘sold as seen’, commonly seen in classified ads, underlines that position.
As a result, with the help of professionals, it’s up to the homebuyer to carry out all necessary checks and investigations. That’s why you should arrange a survey, and your conveyancing solicitor conducts searches and other enquiries. However, although the seller is not required to volunteer any issues with the property, they must deal with enquiries accurately and honestly. And that begins with the Property Information Form (TA6).
The TA6 and the seller’s replies to any further enquiries form part of the contract. So, if the seller:
- knowingly misrepresents any of their answers and
- the buyer relies on those representations in proceeding with the purchase,
- the buyer can sue for breach of contract.
As you might expect, one of the many sections of the TA6 requires the seller “to provide information about any existing disputes, or complaints or anything that could lead to a dispute in the future… The seller should also provide information about disputes that have arisen in the past.”
Find out more about Property Misrepresentation Claims |
Proving seller lied about neighbours
Unfortunately, proving the seller provided you with inaccurate information about a dispute is not always straightforward. You may need to find other people who are both able and prepared to come forward and give evidence of the dispute between your seller and the neighbour.
What can I claim for property misrepresentation?
If you can prove misrepresentation, in principle, the Court can allow you to ‘rescind’ the contract. In that case, you can return the property to the buyer and receive your money back. However, that rarely happens, and the Court usually only awards compensation (damages).
The Court bases the level of damages on ‘diminution in value’. That is the difference between what a buyer would have paid for the property knowing about the dispute and the price actually paid. You will require expert evidence from a property professional (usually a surveyor) to establish the first part of that equation.
Yet even the full diminution in value figure may not reflect the actual cost to the buyer in rectifying the issue, although the Court might award additional damages to cover other specific expenses incurred.
Seller lied about neighbours: what can I do?
We strongly recommend that you contact us for initial advice and guidance as soon as you suspect that your seller misled you about a neighbour. Disagreements can deteriorate swiftly, so it’s crucial that you exercise considerable caution in any dealings with your neighbour until you have spoken to us. We will help you to establish where you stand legally, both regarding your neighbour and your seller. And importantly, we will also explore with you whether it may be possible to avoid the cost of taking the matter to court. Many cases are resolved through other forms of dispute resolution, such as mediation.
